Hindustan Zinc Ltd, a Vedanta Group firm, has released its Q1 business update, revealing a mixed performance across various production metrics. The company reported a 2% increase in mined metal production at 263 kilo tonnes year-on-year, but a 12% decrease quarter-on-quarter. Saleable metal production also saw a similar trend with a 1% rise YoY and a 4% dip QoQ.
Refined zinc production stood at 211 kilo tonnes, up 1% over the same period last fiscal but down 4% QoQ. Refined lead production reached 51 kilo tonnes, showing a 2% YoY increase and a 3% decline from the previous quarter. Saleable silver production was at 167 tonnes, down 7% YoY and 12% QoQ.
The company attributed the decrease in net profit to lower zinc prices, although it was partially offset by a significant 11% cost improvement and a 5% increase in silver volume. Despite the challenges, Hindustan Zinc reported a consolidated net profit of ₹2,038 crore for the quarter ended March 31, 2024.
The company also highlighted its wind power generation, which saw a 78% sequential increase but an 11% YoY decrease due to wind velocity and seasonality impact. Shares of Hindustan Zinc Ltd ended at ₹652.30 on the BSE, down by ₹4.50 or 0.69%.
As the company transitions to pyro operations on lead mode, WIP build-up occurred in June, which is expected to be liquidated in subsequent periods. Overall, Hindustan Zinc is navigating the market challenges with a strategic focus on cost management and operational efficiency.
